Santos clears path for first Barossa shipment

Santos is set to load its first LNG cargo from the $6.1 billion Barossa project in the coming days, marking a key milestone for the long-awaited development.

The LNG tanker Kool Blizzard is currently loading in Darwin Harbour and is bound for Japan, as exports finally begin.

Investors welcomed the update, with Santos shares rising more than 5% to $6.38 on the day.

“We have taken a very considered approach to the final stages of commissioning to ensure offshore operations achieve a steady state, high level of reliability as quickly as possible once full production is achieved,” said Santos chief executive Kevin Gallagher.

Gas from Barossa began flowing in September, but pipeline connection failures delayed shipments by around two months, pushing back the export timeline.

Once fully operational, the project will replace declining supply from Bayu-Undan and provide critical feedstock for the Darwin LNG plant.

“While the delay was disappointing our aim is to commission the facilities and to identify and rectify any vulnerabilities to support our objective of achieving a high reliability operation for the long term,” said Santos chief executive Kevin Gallagher.

Barossa is one of two major growth projects, alongside Pikka in Alaska, expected to lift Santos production by around 30% by 2027.

The company is due to release its full-year 2025 results on 18 February.